Partner vs Build: The Enterprise Cloud Services Dilemma

By NetEnrich Guest Blog 1

Cloud-Partners

Historically, systems integrators have done well for themselves in designing IT systems and infrastructures, selling and installing the underlying products, and providing ongoing professional support. The legacy IT infrastructure powering the global economy was built by systems integrators one server, one SANs appliance and one switch at a time.

New Inflection Point

Now, as the next wave of cloud computing and ITO come washing over the IT shoreline, systems integrators are faced with how they will evolve to match these new demands, dynamics and expectations.

For some, the choice is nothing more than what they’ve always done; the sale and support of infrastructure components. Others are entering the cloud services arena through a traditional approach, investing heavily in developing the infrastructure, applications and expertise capacity to deliver common and complex cloud and IT services. Still, others are choosing to forego infrastructure development and partner with infrastructure and application specialists that have the expertise and capacity to deliver IT services.

The economics of cloud computing are deceptive in both their simplicity and complexity:

On average, it takes nine to 12 months for a cloud computing account to become profitable because it needs to not just recoup the cost of cloud infrastructure development, but also cover the general operating costs.

Faster, More Cost-effective Time to Market

Specialist companies such as NetEnrich are giving system integrators options for quickly entering and scaling their enterprise cloud computing business by supplying the infrastructure and support expertise with lower startup costs and faster return on investment.  In cloud partnerships, the model works in the favor of the system integrator, which often pays only for the service it consumes. This means development cost remain in check.

Even better, systems integrators choosing the partnership model are able to focus on signing services accounts rather than developing infrastructure. The services model is predicated on the constant addition of new accounts, and the retention and expansion of existing accounts. Without the worry of having to continually support their own infrastructures, systems integrators are free to focus all their energy on developing their sales, book of accounts and revenues.

Can systems integrators do well developing their own cloud and services capacity? Can systems integrators continue to make a good living selling hardware and software, regardless of the cloud trend? The answer to both is yes – but each of these models comes with an increasing cost and waning ROI. For system integrators in the enterprise market, partnership in cloud services with an experienced and able cloud services partner is expediting their services evolution and success.

justin_crotty